Blogs

According to the DairyCo (UK) Milkbench+ report, the relationship between cost of production and profit is much stronger than many dairies realize. The report states that cost of production is the most significant factor in determining profit.

Milkbench+ analyst Karolina Klaskova says: “Through robust data and statistical analysis we see that the relationship between cost of production and margin is strong.” Ms Klaskova acknowledges that the findings are challenging. “The report raises many issues, including just how difficult it can be to make a profit from milk production,” she says.

How does a foreign company gain access to such a large food market like China? Build infrastructure and train people in China to create and build supply chains. Nestlé SA is doing just that with the Chinese dairy market by spending millions of dollars to teach farmers how to care for their cows.

Nestlé will guarantee bank loans for [Chinese] farmers to buy more cattle. The company also plans to set up "cow bases," at which small-scale farmers will pay to have their cattle professionally managed.

This strategy will help Nestlé with its supply needed to create its branded dairy products like Carnation, Coffeemate, and Nido for children.

How can you utilize social media in agriculture? What steps should you take when general media portrays farming operations in a negative light? This webinar offers some guidance, tools, and resources to help. Webinar from Dairy Management Inc. and myDairyToolkit.com, December 14, 2011.

For full screen, click on player below. Click to share video with others.

Ian Davis, retired Senior Partner at McKinsey and Company, recently
shared his top five leadership traits with Stanford's Graduate School
of Business students. Ian has consulted with major international
management leaders, seeing very good... and some not very good
management teams. This half hour program is a great thought provoker
for your management team and might be a good point of initiation for the
'up and comers' that are ready for advancement. Best wishes in the New
Year!

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If you could take weather risks out of the picture, how would it change your decision making? The Climate Corporation can do just that with their unique insurance program. Not production insurance, not crop insurance, but weather insurance.

Our surveys' would suggest those food prices are up, and up significantly.

However, there are enough of uncertainties in the market places that suggest that food prices will only be a factor but not the driver.

Other activity in agriculture suggests that the sector as a whole is doing well. There still are issues with corn and bean prices remaining high, with impacts to cattle prices. But over all 2012 looks pretty good.

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You know how to produce milk. Lots of it. And very efficiently. But those things outside your control never end. Consumers want today's prices and quality produced under conditions and technology from the 1950's. How do you tell them agriculture needs technology to feed 7 billion people? What don't they understand? Dr. Marty Strauss, Kahn Strauss and Associates, shares how to better bridge that producer / consumer communications gap when today's consumer doesn't really understand what they're getting and why.

And speaking of consumers, food prices rising. Will they blame ethanol or milk producers? And what will it mean inside the beltway when negotiations on the next Farm Bill begin? American Farm Bureau chief economist Bob Young shares that and more.
How is your dairy conference connection developing? Conferences are more than just the event location, presenters, food, and attendees. Each successive event you plan is building a feeling, a movement, possibly even a brand.

Food prices are higher and the consumer (Black Friday sales notwithstanding) are hunkering down. What does it mean for U.S. agriculture and agricultural policy? Let's ask American Farm Bureau Federation chief economist Bob Young.